We keep getting showers here. Part of the daffodil grading line is outdoors so each time there is a shower, we draw a sheet over the bulbs and run for cover - me to my office and the grading team to the canteen. We have got all the wet day tasks done already. The yard and buildings have all been swept and I, for the first time in living memory, have got a clear desk (at least I have nothing to do that can be done on a Saturday).
This is why I keep writing these entries.
Anyway. I thought that I would just have a tiny blather about inflation. This week I stumbled across the annual farm reports of Oliver Walston. He publishes them on his website here and has done for over thirty years. Look, we've got some time, let's stick a tiny picture of the old subsidy-hater up here. Get your telescope out - it's a tiddler.
His reports form a fascinating historical archive. It is his honesty and breadth of vision which make them useful. Oliver's candour has always made his writing and communication hugely enjoyable and I believe that he is one of agriculture's greatest assets. I've always shared his bafflement at the CAP and love the way that he goads other farmers.
Not sure why I'm suddenly singing his praises, this blog is normally reserved for slagging people off.
Anyway. Have a look at his reports from the late 70's. Inflation was running at 15% (guess who was in government) and, although commodity prices were high, it was a challenging time to farm.
We can look back at these reports and laugh at anyone thinking that nitrogen was expensive at £30 a tonne or tractors too costly at £7000. Any ass can be smart with hindsight. What can we learn from this now?
My conclusion is that inflation will always feature in our lives as long as the population grows and living standards increase. As anyone who did (or more particularly anyone who didn't) buy a house between 1998 and 2007 will tell you, the most important thing during inflation is to keep buying. Anything that you don't buy will be more expensive tomorrow and money in the bank becomes less valuable every day.
If you need it and you can afford it, you have to have it. I reckon that when inflation is painful you have to fix your gaze on your long term goal and get down to work.
I'll see you in debtor's gaol, I guess.
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